The SEC is set to announce their decision on whether to allow a Bitcoin ETF this afternoon after the market closes. A lot of people will tell you that this is a “sell the news” event.
BS. Don’t listen.
This is a win-win for Bitcoin, and here’s why.
In case you missed it, the SEC’s X account announced the approval of an investment product linked to Bitcoin yesterday. Turned out to be fake news that the SEC immediately retracted.
Folks, this is just noise. A prank, someone trying to juice the system, someone doing a little insider trading. Whatever it was, that announcement and the real one coming today have nothing to do with the 100% rally that you’re about to see in Bitcoin.
Bitcoin is in a win-win situation when it comes to its chart. That’s why the market shouldn’t care about today’s announcement. Instead, we should be prepping for the next predetermined rally.
We’re in one of the most powerful breakouts that Bitcoin has seen since December of 2020.
After a pullback and consolidation period, Bitcoin broke above its long-term bollinger bands – which measures price volatility – in December 2020 as the asset made another advance to new highs. The cryptocurrency embarked on a 130% rally over the next four months as investors once again piled into the asset.
There was no SEC announcement or other fundamental change that drove this move, just the natural trend taking over.
We’re in the same position now.
Bottom Line
People will tell you that history doesn’t repeat itself, but the market’s history tends to rhyme. We’re about to see that play out as Bitcoin has initiated its move to $100,000.
An SEC approval today may help get that rolling, but there’s so much more driving this rally, which means a rejection of the spot ETF will only be a temporary setback.
I’m ready to ride Bitcoin to $100,000.
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About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.
